CCIQ DIGITAL READINESS STUDY 2016
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CCIQ DIGITAL READINESS STUDY 2016
FOREWORD Our mission is to empower every person and every organisation on the planet to achieve more. Our strategy is to build best in-class platforms and productivity services for a mobile-first, cloud-first world. Our ambitions are to reinvent productivity and business processes, build the intelligent cloud platform and create more personal computing. Woven throughout daily life, whether it be work or play, Microsoft technologies enable millions of Australian partners and customers to innovate in new ways. Microsoft recognises that small businesses are the backbone of Australia’s economy. We strongly believe that creating a culture of work that fosters innovation is critical to our countries future and the success of small businesses nationwide. Our partnership with CCIQ allows us to collaborate and continue our mission of helping businesses realise their full potential. Established in 1985, Microsoft Australia is the Australian subsidiary of Microsoft Corp., the worldwide leader in software, services, devices and solutions that help people and businesses realise their full potential. Headquartered in Sydney, Microsoft Australia has seven regional offices across the country.
> Executive Summary 1 > The Digital Economy 2 > Web Presence 3 – Mobile Web Presence 5 > The Cloud 6 – The NBN 7 – Internet Connectivity 7 – Server Use 8 > Business Protection & Recovery 9 > Software 11 > Technology and Support 14 > Devices & Hardware 18 > Data 20 > Digital Marketing & Social Media 23 – Advertising 24 – Social Media 24 > Staff and Resources 26 – Staff Guidelines and Access 27 > Digital Readiness 29 > Survey Background 32 – Industry Representation 33 – Business Size 33 – Business Locations 34 – Areas of Trade 34
EXECUTIVE SUMMARY
The Chamber of Commerce and Business competition is already being driven by how well firms are able to
leverage technology to drive productivity, profitability and growth as well as
Industry Queensland’s (CCIQ) 2016 find new markets, customers and segments for their products and services.
This can only become truer into the future.
Digital Readiness Study is the
Since first launching the Digital Readiness Study in 2013 more than
fourth annual survey of how ready 2,500 businesses from across the state have had a say on the digital and
technological issues that matter to them. From the NBN to cloud platforms,
businesses across our state are from the rise of social media to generating online sales, businesses have
engaged with our study to provide insights that drive two purposes:
when it comes to incorporating
>> To help CCIQ drive positive changes for small business through
technology as a core advantage. lobbying, education or member services
>> To help ICT providers better meet the needs of Queensland
businesses and through accurate information and research into
the small and medium enterprise (SME) market
The research shows continuing adoption of technological solutions
within Queensland businesses, and also identify the barriers which
prevent businesses from improving their technological capabilities in
order to fully participate in the digital economy.
We are delighted to partner with Microsoft to bring you this latest
round of insights.
1 CCIQ DIGITAL READINESS STUDY 2016THE DIGITAL ECONOMY
Australia’s rapidly growing digital economy has overtaken many This is perhaps most recognisable in the retail sector, where according to
traditional industries such as agriculture, retail and transport National Australia Bank’s Online Retail Sales Index, Australians spent an
to be worth around 5% of GDP, or $79bn. estimated $19.2 billion on online retail in the 12 months to January 2016.
For small businesses, this growth offers unparalleled opportunity as the
By 2020 it is forecasted that growth will have continued reaching $139bn availability of information, technology, resources and tools creates a level of
or approximately 7% of GDP. competition, promotion and access like never before, connecting business
with customers in real time, all of the time, regardless of their location.
This growth is being fuelled by the continued rise of connectivity as access
to the internet continues at a pace across all sectors of the globe. But in order for businesses to truly benefit, they must embrace technology
and work with trusted providers to access solutions and services that will
According to the International Telecommunication Union, a United Nations make genuine enhancements to their businesses; enhancements which
body, around 40% of the globe’s population has an internet connection and give them a competitive advantage that enables growth, sustainability and
globally there are 7 billion mobile device subscriptions. Compare this with 20 long-term profitability.
years ago when less than 1% of the world’s inhabitants were online.
If not, then small businesses face the challenges that whole industries
Domestically, internet use continues to grow. With the rise and rise of are facing as new entrants enter markets and use technology to connect
mobile, consumers access the internet via an average of 6 devices, and with consumers in ways that better meet their needs. From Uber (taxi), to
that’s just while they’re at home. The ease of internet access in urban Netflix (pay and free-to-air TV), from airbnb (accommodation and travel) to
Australia is also fuelling a change in consumer habits with information, Facebook (media companies) billion dollar businesses are being formed
news, products, services and entertainment being consumed markedly with the smart use of technology to feed consumer demand. None of the
differently across age demographics. Adolescents aged 15-17 are spending companies are creating new markets or new services; they are simply using
on average of 18 hours per week online, while those 65 years or over spent technology to bypass and out-manoeuvre incumbents.
the least amount of time (7 hours per week) on the internet.
Businesses who do not understand such demographic trends run the risk
of a generational shift in their business as they fail to reach or engage with
a significant proportion of their future customer base.
For a country like Australia, the rise of the digital economy has huge potential
benefits as connections remove the tyranny of distance, connecting people
like never before. Given the prominence of the digital economy it will soon be
logical to stop distinguishing between traditional and technological methods.
In coming years it will simply be “the economy”.
2 CCIQ DIGITAL READINESS STUDY 2016WEB PRESENCE
UP FROM 10% IN 2015
3 CCIQ DIGITAL READINESS STUDY 2016WEB PRESENCE Correspondingly, 70% of respondent businesses are generating less than
20% of their revenue online. While we have seen an improvement over time
Web presence is fairly universal amongst Queensland small businesses in this area, Queensland businesses must put a greater focus on facilitating
with more than 90% of respondents declaring a web presence. Typically ecommerce across the board.
they rely on internal knowledge to manage their website; only 24%
outsource their site management to an external provider.
80% - 100%
Interestingly businesses appear to be neglecting the requirement to keep 60% - 80%
website content fresh. Twelve percent of businesses never update their
content and over 53% leave their sites untouched for over a month at a time. 40% - 60%
Content is still “king” and as such it is surprising that businesses don’t 30%-40%
take advantage of the benefits of regularly updated web content to boost
engagement, interaction, searchability and Google ranking. 20%-30%
10%-20%
Businesses are using their websites in a number of ways, typically as
would be expected for marketing, client communication and taking 1%-10%
inbound enquiries. 0% 10% 20% 30% 40% 50% 60% 70%
How do you use your website in your business?
Business also need to consider their commitment to content updates and
investment in time and resources to keep their content fresh and engaging.
Education & Training A higher posting frequency is required to achieve tangible outcomes in the
Quotes, enquiries etc. areas of marketing, communication with clients, education and training.
Sell online
Buy online
As might be expected, businesses are reliant upon their website, with 74%
believing it is essential to their business and 57% believing that they couldn’t
Marketing
function easily without it. Indeed with 69% of businesses generating leads
Research / Information gathering
from their website, it’s clearly a critical tool for doing business. These results
Communication with suppliers would indicate that investment in e-commerce and converting leads into
Communication with clients sales should be their next focus.
0% 10% 20% 30% 40% 50% 60% 70% 80%
For the small number of businesses that do not have a web presence,
the barriers to technology are cost, time and understanding, a seemingly
However with less than 25% of respondents selling online there remains a typical set of circumstances when failing to apply a technological solution
clear disconnection between engaging and converting a potential customer appropriate to a market need.
online. In a global marketplace, this is a concern, especially if a customer can
readily buy from a competitor’s site. Despite the fact that a simple website should not be expensive, difficult to
set up or manage, a small proportion of small businesses are nonetheless
reluctant to engage. Of particular concern are the businesses who feel that
they don’t need a website as all prevailing consumer data would indicate that
without a website you simply will not be found by new consumers.
4 CCIQ DIGITAL READINESS STUDY 2016Which of the following applies to why you don’t have a website? Whilst businesses are embracing mobile browsing, the move has not yet
been made into paid applications with only 10% of businesses having an app
I don't have the time, skills or resources
within the App Store or GooglePlay environments.
to manage a website
Does your business have a mobile phone app in the App Store or on
I don't know enough about websites
Google Play?
I use a listing service like Yell or Truelocal
rather than a full website
My business doesn’t need one
Wish we could
Cost of set -up, hosting and maintenance
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% No
MOBILE WEB PRESENCE Yes
In a staggering shift, mobile enabled websites are rapidly becoming 0% 20% 40% 60% 80%
the norm for small businesses with 59% of businesses having a mobile
enabled website (up from 10% in 2015).
SUMMARY
This is a significant shift for Queensland business and is crucial in meeting It is extremely pleasing to see that many businesses have made the
the demand of customers who are now used to having access to information move into embracing mobile enabled versions of their website, offering a
whenever and wherever they need it via mobile devices. In May 2015, Google wider opportunity to engagement as mobile takes the lead in online search
confirmed what many suspected in their AdWords blog Building for the Next and discovery.
Moment as Jerry Dischler, Vice President, Product Management, AdWords
wrote “In fact, more Google searches take place on mobile devices than on However, businesses do need to be aware that a positive mobile experience is
computers in 10 countries including the US and Japan” confirming that when only one part of user’s expectations; they also expect to see fresh content and
consumers want to find something, immediacy is key. be engaged in online environments. Therefore a focus needs to be placed on
generating appropriate and relevant content and curating existing information
Do you have a mobile version of your website? to ensure that websites remain current and are therefore top of mind for
consumers and search engines.
In addition, businesses need to develop solutions and strategies to improve
Wish we could
their digital sales and to actively convert browsers into customers. More and
more consumers are purchasing online and businesses should understand
No that if a customer cannot buy from them, they will look to their competitors.
Yes
0% 20% 40% 60% 80%
5 CCIQ DIGITAL READINESS STUDY 2016THE CLOUD 6 CCIQ DIGITAL READINESS STUDY 2016
As the National Broadband Network is being rolled out, and as software How does your business currently connect to the digital economy?
-as-a-service offerings become increasingly feasible for small business
clients, more CCIQ members are raising the subject of the Cloud. This
year we take a closer looking at the cloud and its applications across Dial-up
Queensland to understand its further adoption and direction. Satellite
ADSL2+
ADSL
THE NBN Cable broadband
Businesses are extremely supportive of the concept of the NBN and the
Wireless/mobile
opportunities it will bring for improved productivity. internet
0% 10% 20% 30% 40% 50% 60% 70%
69% of businesses believe that the NBN represents a good investment in
Australia’s commercial future, 70% believe it will make a positive difference
to their business and 45% feel that it will provide a competitive advantage And when businesses do connect to the internet there is still a lot to be
when competing globally. desired in terms of speed and cost with equal numbers of businesses
dissatisfied and satisfied.
Ironically, however the challenge faced by NBN Co is communication with
future business users. Over 40% of businesses do not know when the NBN How would you rate the quality, cost, and speed of the Internet
will be available in their area, meaning that strategic decisions, investments in connection/s your business presently has access to?
technology and commercial opportunities cannot be planned with certainty.
Strongly Strongly
Agree Neutral Disagree
Agree Disagree
The NBN represents a good investment in Very satisfied
36.86% 32.47% 19.59% 6.19% 4.90%
Australia’s commercial future
Satisfied
The NBN will revolutionise the way I do business 17.01% 23.45% 40.21% 13.66% 5.67%
The faster speed internet access promised by the Neither Satisfied
34.79% 35.31% 20.10% 5.67% 4.12% nor Dissatisfied
NBN will make a positive difference to my business
I know when the NBN will be rolled out to my region 18.35% 21.96% 16.02% 25.32% 18.35% Dissatisfied
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The NBN will make competing globally, easier,
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19.33% 26.55% 38.92% 9.79% 5.41% ile Very dissatisfied
faster and more affordable
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0% 10% 20% 30% 40%
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INTERNET CONNECTIVITY
Until the NBN rolls out businesses are connecting to the internet in a Along these lines, CCIQ often receives feedback from members, chamber
number of ways including, in some cases, the use of a dial-up connection. representatives and other stakeholders outside of South East Queensland
This really highlights the need for all efforts to be made to roll the NBN out who are frustrated about their internet speed and reliability, and who believe
across Australia as quickly as possible. that business should be prioritised before households for NBN connection.
7 CCIQ DIGITAL READINESS STUDY 2016SERVER USE At this stage the results are not particularly insightful, but this data will be
This year, for the first time, we have included questions relating to server measured annually to monitor any changes.
usage in order to chart trends about on-site or data centre-based server
usage. This year will set a baseline for this metric of digital readiness, which For the first time businesses were asked about their adoption of the cloud
we anticipate may become a barometer of cloud-based technology uptake. in relation to applications and we have identified that 8% of businesses have
fully embraced the cloud, with a significant majority moving some of their
Over half of the businesses surveyed keep a computer server in their office, software services to Cloud based platforms.
and 28% of businesses have a server located at a third party hosting facility.
Have you migrated any applications or processes onto a cloud platform?
Do you have a computer server in your office?
57.2% Some
54.7% Yes 34.8% None
45.3% No 8.0% All
SUMMARY
Do you have a computer server/s located in a 3rd party hosting facility (e.g. With increased connectivity, improved speeds and greater reliability,
Amazon, Rackspace, iSeek, AAPT, Optus, Telstra)? Queensland businesses are beginning to embrace the cloud. However,
in order to do so fully, businesses require further improvements to be
made in quality, speed and reliability of their internet services and a clear
prioritisation of NBN roll out to business connections.
29.4% Yes
70.6% No
8 CCIQ DIGITAL READINESS STUDY 2016
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leBUSINESS PROTECTION & RECOVERY 9 CCIQ DIGITAL READINESS STUDY 2016
Queensland is a state that is regularly impacted by events that can cause A major concern highlighted by the survey is the apparent lack of a business
interruption to business. From cyclones to flash flooding, small businesses continuity plan in many businesses.
are directly impacted by nature and face the uphill challenge of getting their
business back up and running. Whether it’s damaged property and premises, Does your business have a business continuity plan in place to support
disrupted supply chains or blocked customer pipelines, disaster can the continued operation of your business in adverse conditions such as:
seriously compromise a business’s systems and cripple its ability to operate. cyclone, fire, loss of telecommunications?
Has your business been directly impacted by a major disaster in the
past 12 months?
52.5% Yes
37.6% No
9.9% Don’t know
5.5% Yes
94.9% No
It’s alarming that, with Queensland’s track record of natural disasters, 38%
of businesses admit they do not have a business continuity plan. As a result
of the 2011 floods and Cyclone Yasi, CCIQ undertook research into the impact
Pleasingly only a relatively small number (5%) of businesses surveyed have of natural disasters on small business and found that, on average, business
been impacted by a major disaster in the last 12 months and, on the whole, impacted by flood or cyclone were closed for five days and endured direct
businesses (92%) are taking positive measures to back up their data and to impacts to their business for more than six months.
ensure they have files and information available in the event of a critical failure.
A business interruption plan is a simple way of ensuring you can return to
The usual methods of backup are being used, with businesses favouring full operations as quickly as possible and should be an essential part of any
external hard drive back up ahead of Cloud and tape storage. All are workable businesses operation if trading in Queensland. As the previous results show,
frameworks for ensuring that data and files are protected but it is crucial that businesses are taking steps to protect their information and back up their files,
businesses using tape and external hard drives give thought to how those and it is of vital importance that businesses take the next step in the disaster
devices are then managed and secured so that they do not get caught up in a management process to have plans in place that enable their back-ups to be
similar disaster. Keeping tapes and hard drives on-site, or equally in just one used and operations to return to normal as quickly as possible.
offsite location, can make them just as redundant.
It is advisable that business who are taking the very important steps to protect SUMMARY
their data are also taking the steps to ensure that in the event of the worst case Many businesses are taking important steps to protect their data through regular
scenario they are able to quickly and easily access the data that they need to back-ups. However, it is imperative that businesses look to develop a business
ensure the smooth running and operation of their business. interruption plan focussed on disaster preparation, mitigation and recovery;
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because in Queensland it is not a case of if disaster will strike but when.
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10 CCIQ DIGITAL READINESS STUDY 2016SOFTWARE 11 CCIQ DIGITAL READINESS STUDY 2016
Software is the nuts and bolts of a business’s daily operation, a vital EMAIL
connector, processor and distributor of information, knowledge and Email is the ubiquitous solution for communication. Since its widespread
activity. In this year’s survey we once again see that Microsoft’s Office arrival in the early 1990s email has become a mixture of communication
suite is almost universal in its adoption with over 90% of businesses channel, storage system, permanent record of activity and irritant as
using that software. businesses work out the best way to fully utilise this channel, to synchronise
calendars, meetings mailboxes and teams.
As might be expected, accounting software is used widely with 66% of
businesses using products like Xero, MYOB and Quick Books to process their What type of email service does your business use?
financial information.
There’s clear air to the next tiers of software which cater more for category
Free webmail (e.g. Hotmail, Gmail, Yahoo!)
or industry-specific needs. Point of sale software solutions are utilised by the
hospitality and retail sectors while construction, architecture and creative An email hosting service (we pay a
third party to manage our email)
industries are naturally more heavily reliant on design and drawing software.
We manage and host our own email service
on our own servers (e.g. MS Exchange)
What are the most used applications in your business? We use a business-grade email
solution based in the cloud
0% 10% 20% 30% 40%
Property Management Software
Point of Service /Sale Software
Enterprise Resource Planning Software Free webmail (e.g. Hotmail, Gmail, Yahoo!) 17.2%
Asset Management Software An email hosting service (we pay a third party to manage our email) 29.4%
Design/Drawing Software We manage and host our own email service on our own servers (e.g. MS Exchange) 35.6%
Business intelligence
We use a business-grade email solution based in the cloud. 17.8%
Accounting Software
Apple iWork With solutions split across the types of email service available, it is clear from the survey
Microsoft Office that email is an essential part of the vast majority of operations, with 97% of businesses
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
agreeing with this statement.
Strongly Strongly
Agree Neutral Disagree
Agree Disagree
We are also seeing early markers that Cloud-based applications are becoming
popular. Fuelled by product releases, increasing internet speeds, mobility of Email is an essential tool for my business 88.75% 9.13% 1.91% 0.21% 0.00%
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workforce and the desire for continuous connection, over 70% of businesses
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Email enhances my productivity 65.60% 21.79% 9.19% 3.42% 0.00%
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58.12% 23.29% 11.11% 5.77% 1.61%
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365 and QuickBooks Online.
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across multiple devices
Interestingly there is a slightly less positive response when looking at the
productivity aspect (86%) and multiple device connectivity (81%) indicating that
although essential, email could still be utilised slightly more effectively to truly
gain maximum benefit.
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12 CCIQ DIGITAL READINESS STUDY 2016
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WDespite the reports of companies banning email, running email-free days and This point is underlined by examining the types of attacks made on businesses
testing alternative methods of communication, it would be a bold prediction in the last 12 months.
to believe that email will not be a mainstay of Queensland businesses for the
immediate future. Has your business been affected by any type of computer or online related
malicious activity in the past 12 months?
When it comes to email security, Queensland business feel they are protected Computer virus or malware 40.3%
from attacks with 73% believing that they have adequate system security Email spam 80.31%
measures in place to protect their email/contacts/calendar functions. Given Denial of service attack on my website 9.84%
the importance of email to business, it would be advisable for the remaining
Phishing (someone illegally purporting to represent my business) 14.17%
27% to seek certainty in this area due to its essential nature for day-to-day
operations.
From spam to DNS attacks, it seems almost inevitable that when a business
Do you have adequate system security measures in place to protect your connects to the internet there will be an attack. Therefore protecting your key
email/contacts/calendar functions? information and data is of essence to the continuous operation and security of
a small business.
SUMMARY
Microsoft’s Office suite is the go-to application suite for the vast majority of
73.9% Yes businesses with accounting packages and financial management software
also dominating the market. Businesses then tend to specialise their software
6.3% No
requirements based on industry need relying upon point of sale, drawing and
19.8% Unsure design packages to support their core activities.
As we would expect, email is an essential tool, deemed vital to the day-to-day
running of an organisation. Although aware of the security threats posed by
email, business feel protected from malicious attacks, but a significant number
could consider regular checks and updates just to be doubly certain.
Businesses are rightly concerned about email being used as way to spread
viruses and malware. Only 11% of businesses are unconcerned about the
threat posed by email attacks. Again, Queensland businesses need to be
vigilant and work with partners to appropriately protect their systems and
educate their staff as to the steps to take to minimise the risks that inevitably
come with utilising email.
13 CCIQ DIGITAL READINESS STUDY 2016TECHNOLOGY & SUPPORT 14 CCIQ DIGITAL READINESS STUDY 2016
When used appropriately, technology has the ability to significantly More pointedly, previous rounds of this study have highlighted the problematic
impact a business’s bottom line through increased productivity, process relationship between small business people and technology vendors. IT sellers’
automation, processes simplification and innovation. use of complex language and technology jargon, combined with their inability
to clearly explain the benefits of a solution continue to present major obstacles
In Queensland, Australia’s most decentralised state, technology can also have for both the vendor and the small business purchaser. It will be interesting to
material impacts by enabling flexible working, remote site connections and dig deeper into the data and find reasons as to why businesses are challenged
reaching distant customers and markets. to find solutions for their needs.
Historically CCIQ’s Digital Readiness Study has highlighted a disconnect On the whole, businesses use a mixture of in-house and external providers to
between the ICT industry and small businesses resulting from a reluctance manage their technology needs.
of small operators to invest in new, rapidly changing and quickly superseded
technologies. One area of concern identified in the results is that, of the one third of
businesses who manage their technology solutions in house, 43% of those
One of the challenges facing small business is finding services that are ‘make do’. It is worth asking whether ‘making do’ is the goal, especially when
suitable and appropriate for their processes and operations. As such, more considering the productivity benefits of having expert help.
than 1 in 4 businesses find it difficult to identify and source technology which
supports their business needs. How do you presently support your business' technology needs?
In house support only – we have the skills and knowledge we need 20.66%
Is it easy to find technology to support your business needs? In house support only – we make do 16.20%
We use service providers / outsource 19.95%
We use a combination of in house and service provider support services 43.19%
There are four areas that ICT providers must focus on in order to work
with small business clients in Queensland. Customer service, Reputation
and Services are the most essential factors when small businesses make
70.9% Yes decisions about who to partner with and buy from. Price is only the fourth most
29.1% No important consideration, validating previous data that shows business value
support and service over cost in what is a challenging practice area for them.
And it is not too far a leap to suggest that the Customer Service and Services
factors play a direct part in a provider’s reputation, the third most important
factor a business considers when choosing a provider.
This could be the case for several reasons. Cost, market size, and the bespoke
needs of small business will always throw up challenges when it comes to
finding solutions “out of the box”.
15 CCIQ DIGITAL READINESS STUDY 2016What is the key attribute you look for when getting technology support? Which of the following has your business experienced (even for a
brief amount of time) in the last 12 months as a result of an IT
They listen
related problem or incident?
Location of the provider Incurred unexpected expenses 64.81%
Knowledge of my industry Business reputation was harmed 10.10%
Customer service
Customer satisfaction was reduced 36.59%
People
Opportunities to reduce costs were delayed or missed 33.90%
Services
A competitor beat my business to market 11.15%
Products
Reputation Businesses are naturally pragmatic when making investments on ICT
Price equipment, with 60% of businesses having equipment that is on average more
0% 10% 20% 30% 40% 50% 60% than two years old. And while vintage equipment may be an issue that hampers
productivity and connectivity, almost 50% of businesses state that they will
selectively invest in ICT over the next 12 months based on the contribution
Following on from this, when business do partner with ICT providers, there made to the business. Again the issue of return on investment has been raised
are clear areas in which those providers can sharpen their game to improve validating previous feedback that ICT providers must demonstrate a clear fiscal
their reputation and customer satisfaction. With 39% of businesses reporting or productivity gain to their clients.
the high cost of IT and a low or unknown return on investment, aftersales
teams could be playing more of a role to ensure performance is reported and How old is most of your IT equipment?
communication with the customer continues. Businesses are calling out for
clear and demonstrable proof that investment yields return.
4 years +
And with 22% of businesses reporting an issue with Outsourcing/Cloud Service
providers, ICT providers in this area must focus on customer service is so as 3 years
not to erode the opportunity presented in this space.
2 years
Which of the following technology related issues has your business 1 years
experienced in the last 12 months?
High cost of IT with a low or unknown return on investment 39.2% More than 6 months
Project overrun 16.1%
Less than 6 months
Security breach 13.2%
Privacy breach 1.8%
0% 10% 20% 30% 40%
Disconnect between technology and business strategies 26.9%
Not enough IT staff 24.6%
Inadequate disaster recovery or business continuity measures 9.1%
Lack of agility 15.5%
Lack of inovation 17.0%
Serious IT operation incidents 9.1%
Issue related to cloud computing 16.7%
Issue related to mobile device security 4.1%
Issue related to outsourcing / technology service providers 22.5%
Issue related to employees using personal devices for work activities 12.9%
16 CCIQ DIGITAL READINESS STUDY 2016In the next 12 months, what is your business planning to do regarding SUMMARY
IT-related investments? Businesses are pragmatic when it comes to investment in ICT services, largely
Reduce across the board 1.88% due to the need to be fully persuaded that there will be a clear return on their
Reduce selectively based on potential/expected contribution to business value 5.65%
investment in terms of productivity gain or process simplification.
Freeze current level 12.47%
For ICT vendors their success will be down to how they are perceived
Increase selectively based on potential/expected contribution to business value I 49.65%
by businesses across three key areas: Customer Service, Services and
Increase across the board 10.12%
Reputation. If businesses can be confident that they will be supported by
Unsure 20.24%
a reputable company who will help if things go wrong then they will be
If vendors and businesses work well together then there are clear benefits successful over a business whose only competitive advantage is price.
for businesses who do invest wisely in IT, with productivity gains (37%) and
improved customer service (30%) being the two main reported benefits. With
only 2% of businesses reporting a cost reduction, work needs to be done to
measure and communicate IT returns on investment.
What is the greatest benefit your organisation receives from its
investments in IT?
Cost reduction 2.17%
Inprove customer service 29.88%
New or improved products and services 11.33%
Improved business intelligence 16.39%
Increased security of informtion 2.89%
Improved productivity 37.35%
17 CCIQ DIGITAL READINESS STUDY 2016DEVICES &
HARDWARE
SOFTWARE-AS-A-SERVICE,
SUCH AS MICROSOFT 365, IS
ENABLING REMOTE WORKERS
APPLE IS CLEARLY KING
IN QUEENSLAND LEADING
BOTH THE SMARTPHONE
AND TABLET MARKETS
18 CCIQ DIGITAL READINESS STUDY 2016When it comes to digital devices Apple is clearly king in Queensland Which electronic systems and data do your mobile workers have access to
leading both the smartphone and tablet markets. when they are working away from the office?
What type of digital devices does your business have?
Inventory and ordering
Customer relationship
management (CRM)
Hand held devices for Finance and accounting
business operations
Reporting
Tablet - Android Internal knowledge bases
Intranet
Tablet - Apple
Files and documents
Smart Phone - Android Shared calendars
Individual calendar
Smart Phone - Apple Email
Not applicable to my business
0% 10% 20% 30% 40% 50% 60% 70% 80% - I don't have any mobile workers
0% 10% 20% 30% 40% 50% 60% 70% 80%
Across the board there really has been a smart device revolution in Queensland
businesses that is fuelling permanent connectivity, flexible working and SUMMARY
making remote working far simpler than ever before. Apple dominates the smartphone and tablet market, a market that has grown
as businesses have embraced mobile solutions to keep their staff connected to
With the rise in Cloud computing, proliferation of software-as-a-service the information that they need to do their jobs. In a decentralised state such as
models such as Microsoft 365, and exciting new collaboration tools coming into Queensland, mobile working can assist businesses to operate remote staff, a
the market, the benefits are very real for Queensland businesses who make mobile workforce and connected sites, simply and efficiently.
the effort to use technology to better manage their business operations.
As such businesses are enabling remote workers to access more and more of
the systems that they need to be able to do their jobs.
19 CCIQ DIGITAL READINESS STUDY 2016DATA
INTERESTINGLY, ONLY 30% OF
BUSINESSES MANAGE THEIR DATA USING
A CRM TOOL SUCH AS SALESFORCE
FOR SOME
BUSINESSES,
DATA IS THE MOST
VALUABLE ASSET
THAT THAT OWN.
20 CCIQ DIGITAL READINESS STUDY 2016From big data, to open data, to the internet of things, the ability to leverage How would you rate your thoughts on the following statement?
insights from information can revolutionise the performance of a business. "We are becoming more customer-focussed as a business"
For small businesses who can now cost-effectively manage customer data,
and for large organisations developing products and services based on
trends insights, there are now more opportunities than ever to profit from
the power of data.
41.3% Strongly agree
According to Dr Alexandra Samuel in the Wall Street Journal “Companies are 43.5% Agree
sitting on a treasure trove—if only they knew how to use it.” So in 2016, how are
13.5% Neutral
Queensland businesses using, managing and protecting their data? (For some
businesses, the most valuable asset that that own.) 1.8% Disagree
0.0% Strongly disagree
One of the greatest benefits of managed business data are the customer
insights it can provide and, in turn, the additional opportunities that knowing
your customers brings. Existing customers are any business’s greatest asset,
as known customers are more likely to offer repeat and ongoing businesses
at a far lower cost than acquiring new customers. As such it is pleasing to From the study it would appear that Queensland businesses have largely
see that Queensland businesses feel that they know their customers well, dispensed with paper-based forms of customer data management and are
with 79% of businesses feeling that their staff understand their customers using electronic means to record basic customer data, billing, transaction
even before meeting with them to discuss aspects of their business. information, contact details and sales data, with responses over 70% in each
category. For businesses not using electronic data management tools, there
How well do you and your staff understand your customers isn’t perceived need or a potential return on investment in some instances, or
before attending meetings/appointments with them? in others, a lack of data management skills.
Extremely well 23.99%
What elements of your customer data is managed electronically?
Well 55.16%
Neutral 19.28%
Poorly 1.35%
Sales data
Extremely pooly 0.22%
Contact details
Queensland’s businesses also clearly feel they are becoming more
customer-focussed and this should result in stronger loyalty and greater Transaction history
financial rewards over time.
Billing
t
ne
t er
in
ile
ob
/m
Basic customer data
ss
le
ire
W
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
21 CCIQ DIGITAL READINESS STUDY 2016Interestingly, only 30% of businesses manage their data using a CRM tool such SUMMARY
as Salesforce, and more research may be needed to understand the degree Queensland businesses feel that they have a good level of control over
to which data is systematically managed in the remaining 70% of respondent their data, and are keeping it clean and up-to-date. They also have a clear
businesses. understanding of their legal and best practice obligations as they comply with
the necessary legislation that governs data capture, storage and usage.
Queensland businesses have a great deal of confidence that their data is safe
and secure, indicating that appropriate protections are in place to ensure they By and large, data is stored electronically, however it would appear that
are protecting their essential assets from attacks. data sets are stored in independent programs rather than through a single
CRM solution which would hint at complex integration or little integration
Businesses are also confident that they are compliant with the various and manual updating between systems taking place. This is an area where
legislative acts relating to personal and transactional data. 77% are confident businesses could look to improve integration to in turn improve accessibility
or very confident that they comply with data protection, spam, and privacy and accuracy of customer data and information.
legislation. For those required to comply with the Payment Card Industry Data
Security Standard (PCI DSS) for handling cardholder data, the majority are
compliant with the remainder working towards compliance.
As a result businesses are confident of the cleanliness and quality of their data
with 23% stating that they are very confident. Given that customer data is a
critical element of any businesses this is a very positive result.
How confident are you that your data is clean, up-to-date and of
good quality?
22.8% Very confident
49.8% Confident
18.6% Unsure
7.7% Lacking in confidence
1.1% Not at all confident
22 CCIQ DIGITAL READINESS STUDY 2016DIGITAL MARKETING
& SOCIAL MEDIA
FACEBOOK
SEO ADWORDS
FACEBOOK
IS NO.1
23 CCIQ DIGITAL READINESS STUDY 2016Digital marketing and social media have the power to drastically expand Given the relative costs and unpredicatable returns it is perhaps unsurprising
the reach that a business has into a market and its ability to engage that pay-per-click and pay-per-impression advertising is used sparingly.
with existing and prospective customers. Digital marketing and social
networking channels now at the fingertips of marketers have blown apart Do you use any of the following digital advertising solutions?
the conventions of marketing, with many new tools requiring little or no
costs apart from the time it takes to grasp and use them. Digital channels
have also revolutionised customer targeting capabilities, enabling Pay per impressions website advertising
marketers to place their advertising and content with pinpoint accuracy
– options that traditional media can allude to but simply cannot guarantee. Pay per click website advertising
Twitter paid promotions
Social media has created feedback loops like never before, allowing brands
Facebook advertising
to have real-time interaction with their markets, gain insights and collect
sales-enhancing data from almost every interaction. Google Adwords
Search engine optimisation
Businesses in Queensland must factor digital marketing into their business
strategy and make it an essential part of their marketing and communications 0% 10% 20% 30% 40% 50% 60% 70% 80%
plans. Incredibly, over 60% of businesses currently do not.
Does your business have a digital marketing plan? SOCIAL MEDIA
Social media is also playing an active role in the marketing and
communications efforts of our respondents with 80% of businesses using
social channels for a range of reasons.
Which social media channels do you use to promote your business
38.9% Yes and communicate with customers and potential customers?
61.1% No Facebook 87.40%
Twitter 44.62%
LinkedIn 64.30%
Flickr 1.05%
Tumblr 1.05%
Google+ 29.13%
ADVERTISING Pinterest 11.02%
Over 60% of the businesses surveyed advertise online, with Search Engine Salesforce Chatter 1.31%
Optimisation, Facebook and AdWords being the most used channels. Each Yammer 4.99%
option can be relatively cost-effective and highly-targeted, and can be Blogs 18.64%
switched on and off any time which allows small businesses a whole new
level of control.
24 CCIQ DIGITAL READINESS STUDY 2016Facebook is indisputably the primary social channel used by businesses, When analysing this data we based our uncertainty on the fact that against
with 87% of respondents connecting with their customers that way. Twitter, each metric a significant proportion of the respondents rated the statements
LinkedIn, Google+ and blogging are also very popular as businesses adopt as neutral, which we have interpreted as ‘wait and see’.
content marketing approaches. This is backed up by their rationale for using
social channels: However businesses on the whole are positive about the benefits that social
media has brought to their organisations, which hints that social media is
How do you use social media in your business? becoming a valued, if not yet essential, part of the marketing armoury of
Queensland businesses.
If we look through the findings it is clear that businesses are investing time,
Communicate internally
resources and funds in their quest to reach current and prospective customers
PR through the use of digital marketing techniques. A consideration for all
Marketing
businesses should be the need to create a digital marketing plan to support
their endeavours.
Research/Information gathering
Communication with suppliers
Communicate with clients
SUMMARY
Businesses are looking to add digital channels to their marketing planning
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% and engage with customers in new ways across paid advertising opportunities
and free social channels. In many cases businesses are still discovering the
potential of such channels and are yet to realise a clear and measurable
When looking at the impact of social media on businesses, it’s unclear exactly commercial benefit to their business.
how respondents’ activity is generating benefits. This may be a result of the
fact that businesses are investigating each channel and working towards an It is important that businesses look to develop a clear digital marketing
understanding of each and that many are still in a discovery phase. strategy and plan in order to fully leverage the opportunities on offer and
measure the success of their initiatives. Without a digital marketing plan
Please rate the following statements: and appropriate metrics, businesses cannot have certainty around the time,
Strongly Strongly resources and financial investment made to grow their market through these
Agree Neutral Disagree
Agree Disagree new and exciting channels.
Social media is essential to my business 27.87% 33.48% 21.57% 11.01% 6.07%
Social media helps me generate business opportunities 23.25% 37.02% 22.80% 9.93% 7.00%
I feel confident about managing my businesses
18.51% 35.21% 27.54% 13.77% 4.97%
on social networks
My business could function easily without social media 11.51% 24.83% 27.77% 24.83% 27.87%
Social media is playing an increasingly important
26.74% 33.26% 23.37% 10.34% 6.29%
role in my business
Social media has made a real difference to my
12.36% 16.85% 38.43% 19.55% 12.82%
businesses revenue
25 CCIQ DIGITAL READINESS STUDY 2016STAFF & RESOURCES 26 CCIQ DIGITAL READINESS STUDY 2016
A key longitudinal question for small businesses since the inception of STAFF GUIDELINES AND ACCESS
CCIQ’s Digital Readiness Study relates to the capability of staff to cope Whenever businesses provide staff with access to resources such as the
with change, embrace new technologies and manage platforms, solutions, internet it is advisable to have policies and guidelines in place to ensure staff
suppliers and services in a way that adds value to a business. members are aware of the responsibilities which flow from access privileges.
Given the nature of our respondents, primarily small businesses, it is not The rise of social media has opened up businesses to new employer and
surprising that the vast majority (75%) of businesses do not employ a dedicated employee relationships with questions of account ownership, appropriate
IT manager to support their business. content and a range of additional issues becoming part of a business’s
operating, HR and IR landscape.
Businesses are generally confident that they do have the staff in place to
help their business grow and embrace a digital future, with almost two thirds Business overwhelmingly allows their staff to access the internet, with 46% of
confident of their peoples’ capabilities. Given the nature of small businesses, businesses allowing unrestricted access to staff. Only 13% of businesses do not
many tend to employ a specialist/generalist strategy, where staff manage allow their staff to access the internet at work.
elements of a business's IT operations outside of their traditional job role.
For example a finance and operations team may well manage IT services And generally business takes a liberal attitude to monitoring staff activity
through outsourced suppliers and a marketing function may well manage online with 72% of businesses not monitoring what staff access via the
social media and web platforms as part of their communications and web or email.
customer engagement strategy.
A small majority (53%) have taken the smart step of introducing a social media
This is reflected in the fact that 70% of businesses do not have dedicated policy in the workplace. CCIQ’s employer assistance line receives on average
specialists to manage their digital business. 500 calls per month on HR and IR issues and an increasing number relate to
the conflicts caused by the blurred boundaries between work, home and play
that are caused by social media.
It could be inferred that this level of trust in users is backed up by the attitudes
of businesses in relation to key statements:
Strongly Strongly
28.9% Yes Agree
Agree Neutral Disagree
Disagree
71.1% No My staff spend too much time on the internet at work 1.07% 12.27% 39.20% 37.60% 9.87%
My staff have the skills to help make my business
14.13% 42.93% 31.47% 9.87% 1.60%
successful online
In many ways it is pleasing to see that businesses believe that their staff use
the internet in a fair way at work and also have the skills necessary to help
businesses succeed online.
There is also a confidence that, as the digital economy continues to grow and
resources need to be employed or engaged, there will be a capable workforce
available in Queensland, with the majority (53%) of businesses not concerned
about a future skills shortage.
27 CCIQ DIGITAL READINESS STUDY 2016What type of sites/services do you restrict access to?
Chat/Instant Messaging
Retail
Dating
Social Networking
Adult
Gambling
0% 20% 40% 60% 80% 100%
SUMMARY
Queensland businesses are very trusting of their staff believing that
they will do the right thing when using the internet at work. As such
they only apply light tough monitoring and filtering and feel that their
staff spend an appropriate amount of time online in work time.
As the boundary between personal and professional is eroded
through social media, it is worth businesses considering
appropriate policies to protect their business and their staff in
the event that content or interactions become inappropriate or
harmful to their business.
28 CCIQ DIGITAL READINESS STUDY 2016DIGITAL READINESS 29 CCIQ DIGITAL READINESS STUDY 2016
So how ready are Queensland businesses to take on the digital economy. What will change in the Digital Economy in your business?
Altered business model (to include online) 29.2%
In terms of what the future will hold, businesses are very optimistic about the
Greater emphasis on online activity 43.3%
opportunities that the digital economy brings. Only 10% of businesses are
facing the future with a sense of pessimism – a very encouraging statistic as Improved research / information gathering capacity 39.5%
from our research we know that confident businesses are usually able to see Improved online marketing capacity (interactive web content etc) 54.5%
opportunity and benefit from new developments.
Increased competition from outside businesses 19.6%
What is your outlook toward adjusting to digital business Online Education & Training 34.9%
(including the internet) opportunities? Communication with suppliers 28.9%
Communication with existing clients 54.0%
Accessing new clients (leveraging social media platforms etc) 51.0%
Employment model (more remote workers locally /
21.3%
globally, greater investment in a mobile workforce)
26.3% Very optimistic
Financial management (banking, tax lodgements) 34.9%
63.8% Optimistic Business administration (booking travel etc) 25.6%
8.8% Quite pessimistic New product development 22.1%
1.6% Pessimistic
Business models will need updating. Competition will present challenges. But
there are clear rewards for small businesses, with over 50% believing their
marketing and customer communication will significantly improve, as will their
ability to access new customers. And these feelings are supported by their
positive sentiments across measured statements about the future economic
opportunities that improved technology and connectivity can bring.
However businesses also know that there will need to be change in order to
benefit from the opportunities.
30 CCIQ DIGITAL READINESS STUDY 2016Thinking about the future digital economy, please respond to the following What will assist you to better understand the potential business
statements? benefits of digital business (including the internet)?
Strongly Strongly Information/trainng sessions 53.74%
Agree Neutral Disagree
Agree Disagree
The digital economy will have a beneficial impact on my
Online resources 51.15%
30.55% 47.78% 18.54% 2.87% 0.26%
business Greater awareness 39.66%
I will look to change how I trade because of the
16.49% 42.93% 31.68% 8.12% 0.79% Greater access to relevant professionals 38.79%
opportunities the digital economy brings
The digital economy will only increase the current skills
7.11% 19.21% 51.84% 18.68% 3.16%
shortage
Overall the positivity of businesses is well-founded and, over the course of the
The digital economy is exposing my business to more
competition from overseas suppliers
10.21% 23.56% 31.68% 26.18% 8.38% annual Digital Readiness Studies conducted so far, we are seeing initial fear
My business is well positioned to take advantage of the
being replaced by confidence and a sense of great opportunity.
17.54% 36.65% 36.65% 8.12% 1.05%
digital economy
It is essential that my business becomes more digitally
29.06% 45.03% 20.16% 4.97% 0.79% Correspondingly, the majority of our survey respondents – almost two thirds
savvy
- feel they are digitally ready, with all an average digital readiness score of 6.4
As the digital economy grows, so will my business 17.68% 33.77% 38.79% 8.44% 1.32%
out of 10 across all respondents.
The digital economy is bad for my business and industry 2.36% 5.77% 22.57% 45.93% 23.36%
I will adopt a wait and see approach before investing
3.17% 19.58% 40.21% 25.93% 11.11%
significantly in digital business
However Queensland’s future economic potential will not be fully reached 10
without support and access to knowledge and information.
9
What is your preferred method for learning more about technology trends
8
and opportunities that might be relevant to your business?
Reading relevant articles and publications in my own time (online or offline) 66.84% 7
Listening to relevant webinars and podcasts in my on time 45.45%
6
Participating in live webinars, so that I can ask questions 27.54%
Word of mouth from other business’ I respect 48.93%
5
In person, by attending relevant industry events, conferences and, training 56.95% 4
Being able to pick up the phone and ask technology questions that are specific to my business 36.10%
3
Technology providers should be positioning themselves as experts in their field.
Providing relevant information, essential advice and content targeted at small 2
businesses will be a great way to embed an IT business in the small business
1
marketplace.
0% 5% 10% 15% 20% 25%
31 CCIQ DIGITAL READINESS STUDY 2016SURVEY BACKGROUND 32 CCIQ DIGITAL READINESS STUDY 2016
The digital readiness survey was conducted in 2016 for the two weeks BUSINESS SIZE
between 22 February and 4 March. 490 responses were collected. With over 70% of responses being drawn from business with fewer than 20
employees, we confidently feel that this survey represents the sentiments of
The survey was promoted to CCIQ’s networks of small business owners small business.
across Queensland and via a campaign across social media.
Approximately how many employees do you have?
INDUSTRY REPRESENTATION
The survey represents a broad range of industries in line with CCIQ’s role as a 1–5
representative of the broad based small business sector and as such we are
confident that we can accurately represent small business as a whole. 6-10
11-15
Which industry sectors do you present? 21 - 40
16 - 20
41 - 50
Agriculture, Forestry & Fishing
Mining 51 - 100
Manufacturing
Electricity, Gas, Water & Waste Services
101 - 500
Construction 501 - 1000
Wholesale Trade
Retail Trade More than 1000
Accommodation & Food Services
Transport, Postal & Warehousing 0% 10% 20% 30% 40% 50%
Information Media & Telecommunications
Financial & Insurance Services
Rental, Hiring & Real Estate Services
Professional, Scientific & Technical Services
Administrative and Support Services
Public Administration & Safety
Education & Training
Health Care & Social Assistance
Arts & Recreation Services
Other Services
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
33 CCIQ DIGITAL READINESS STUDY 2016BUSINESS LOCATIONS AREAS OF TRADE
Businesses involved in this year’s survey typically operate between In relation to trading locations, businesses trade across their local
1 and 5 locations. communities, state, nation and globally.
Locally - Within 10km
Regionally - Within my local region e.g. Wide Bay
1–5
State-wide - Across all of Queensland
6-10 Nationally - Throughout Australia
Internationally - New Zealand
11-15 Internationally - China, Japan, Korea
Internationally - Asia Pacific
16 - 25
Internationally - North America
26 - 50 Internationally - Africa
Internationally - Europe
51 - 100 Internationally - South America
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
101 - 200
201+
0% 20% 40% 60% 80% 100%
34 CCIQ DIGITAL READINESS STUDY 2016You can also read
